darcsherry

GBPJPY | Perspective for the new week

Short
OANDA:GBPJPY   British Pound / Japanese Yen
A hawkish BoJ rate hike amidst a strong UK GDP and Industrial Production figures might propel the Yen to new heights as the Pound looks set to end the following week(s) in the trenches.
Technically, with the sight of reversal set-up (triple top look-a-like) at the JY156 zone, It is becoming obvious that the demand zone has lost the momentum to push the price above JY157.5 and the successful breakdown of Key level @ JY156.5 during last week trading session gives a significant clue to the strength of sellers at this juncture in the market. This could be as a result of "quick sell" activities from traders who took advantage of the bullish run... Let's see how it goes!😁

Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Reversal pattern (Triple Top)
Observation: i. With a 5.5% growth in the value of the Pound; It has been a Bullish run in the last 3 weeks and the price appears to have found a peak at JY157.8 - an area that has a memory for selling opportunity (as far back as 2013 - see weekly or monthly chart).
ii. And since price hit peak @ JY157.8, we have witnessed multiple rejections which culminated in a breakdown of Key level @ JY156.5 during last week trading session to signal a downtrend continuation.
iii. The appearance of a reversal set-up in the form of a Triple Top pattern - three peaks moving into the same area @JY156, with pullbacks in between indicates a possible slide in price in the coming week(s) after the price moved below pattern support (key level).
iv. In this regard, I have created a new supply niche around JY156.5/157.0 should the price climb in the early hours/days of the new week with the objective of looking for reversal set-ups for a signal.
v. Below Key level @ JY156.5 remains a comfortable area to open a short position with the option to add to our existing position at a breakdown/retest of JY155.5.
CAUTION: Considering the bullish momentum in the 3 weeks, it is appropriate that we remain open to the possibility of a significant breakout of JY157.5 which shall be enough to negate the bearish narrative... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 350 pips.
Risk/Reward: 1:4.5
Potential Duration: 5 to 12days

NB: This speculation might be considered to make individual decisions on the lower timeframe.

Watch this space for updates as price action is been monitored.


Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.

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